Buying Property in Turkey via a Company vs Personally 2026

If you are planning to invest in Turkish real estate, one of the first strategic decisions you face is whether to hold the asset in your own name or through a company. Buying property in Turkey via a company versus personally is not a cosmetic choice — it changes your tax bill, your liability exposure, your eligibility for Turkish citizenship, and how easily you can one day sell or pass on the asset. For foreign investors, the wrong structure can mean avoidable tax or a purchase that does not count towards a citizenship application. This guide, prepared by the real estate and corporate team at Istanbul Attorneys, breaks down both routes under current 2026 Turkish law so you can decide with clear eyes.

Key Takeaways: What You Need to Know

• Five-year exemption is personal. Under repeated Article 80 of the Income Tax Law (Law No. 193), an individual's gain on property sold within five years of acquisition is taxed as a capital gain, and a sale after five years falls outside that charge unless the property belongs to a business; a company has no such holding-period rule, and its gain on every sale is part of the profit taxed at the 25% corporate rate (Corporate Tax Law, Article 32).

• Companies escape the foreign-buyer caps. A Turkish company — even one wholly foreign-owned — can acquire property for its business purposes without the 30-hectare limit or the 10% district cap that bind foreign individuals under the Land Registry Law (Tapu Kanunu, Law No. 2644).

• Citizenship needs personal title. The citizenship regulation describes the qualifying real-estate investment for Turkish citizenship by investment as property of at least USD 400,000 that the foreign applicant buys, with a three-year no-sale annotation; a purchase by a company should not be assumed to qualify.

• Corporate ownership adds protection and cost. A company brings limited-liability protection and cleaner succession, but also annual accounting, tax filing, and compliance obligations.

• Match the structure to your goal. Citizenship and a single home favour personal ownership; a portfolio, rental business, or commercial project often favours a company.

Two Ways to Hold Turkish Property

Every foreign buyer in Turkey ultimately holds real estate in one of two ways: directly in their own name, with the title deed (Tapu) issued personally, or indirectly through a legal entity — most commonly a Turkish limited liability company (Limited Şirket) or joint-stock company (Anonim Şirket). Both routes are entirely legal and widely used. The difference lies in the consequences: tax treatment, ownership restrictions, liability, and access to residence and citizenship benefits. Choosing well means matching the structure to your real investment purpose, not simply copying what another buyer did.

Buying Property in Turkey Personally: The Direct Route

For most individual buyers — especially those purchasing a home or a single investment apartment — direct personal ownership is the simplest and often the most tax-efficient route. You sign a sales contract, complete due diligence, and the Land Registry (Tapu ve Kadastro Müdürlüğü) transfers the title deed into your name. Engaging a real estate lawyer in Turkey at this stage protects you from title defects, undisclosed mortgages, and zoning problems before any money changes hands.

Ownership Limits for Foreign Individuals

Foreign nationals buying personally are subject to specific caps under the Land Registry Law (Tapu Kanunu, Law No. 2644). Under Article 35, the property acquired by one foreign individual may not exceed 30 hectares nationwide (the President may double this per-person ceiling), and the total held by foreign individuals may not exceed 10% of the privately owned surface area of a district (ilçe). Title transactions are also carried out against the maps of military forbidden, military security, strategic and special security zones supplied to the land registry under Article 35, and the Military Forbidden Zones and Security Zones Law (Law No. 2565) bars foreigners from acquiring property in second-degree military forbidden zones (askeri yasak bölge). These limits rarely trouble an ordinary apartment buyer but can constrain larger land acquisitions.

The Citizenship Advantage

Personal ownership carries one decisive benefit for citizenship. Article 20(2)(b) of the Regulation on the Implementation of the Turkish Citizenship Law covers a foreigner who buys property worth at least USD 400,000 that carries condominium ownership or a condominium easement, or arsa-registered land with a building, with a three-year no-sale annotation on the title. The provision describes a purchase by the applicant; a purchase by a company should not be assumed to qualify. If a passport is your objective, buying personally is almost always the correct structure — our Turkish citizenship by investment team can confirm eligibility before you commit funds.

Buying Property Through a Turkish Company

Purchasing through a company means first incorporating a legal entity — usually a limited liability company — and having that company take title to the real estate. A company established in Turkey is treated as a Turkish legal person even if it is 100% foreign-owned, and that single fact changes the rules significantly. Setting up the vehicle correctly is a job for a lawyer versed in corporate and commercial law; the structure you choose at formation determines your tax and liability position for years to come.

Restrictions That Disappear

A company incorporated in Turkey that is 50% or more foreign-held, or whose managers can mostly be appointed or removed by foreign shareholders, acquires property under Article 36 of the Land Registry Law rather than under the foreign-individual regime in Article 35, so the 30-hectare personal cap, the district limit and the country designation do not apply to it. A locally incorporated company can therefore assemble a larger portfolio or acquire commercial premises that would be awkward or impossible for a foreign individual to hold directly. The acquisition must, however, serve the activities stated in the company's articles of association, the company applies through the governorship where the property sits, and an acquisition inside a military forbidden, military security or special security zone needs prior permission.

When a Company Makes Sense

Corporate ownership tends to suit investors who plan to build a rental business, hold multiple properties, develop or flip real estate, or run a commercial operation from the premises. It also appeals to families and partners who want to hold an asset jointly through defined shareholdings rather than as co-owners on a single crowded title deed. If you intend to generate significant rental income or trade property actively, the company route deserves serious consideration.

Deciding between personal and corporate ownership for a specific purchase? Contact Istanbul Attorneys to discuss your situation: +90 850 242 4043 | WhatsApp https://wa.me/908502424043

Common questions about this topic

Which Structure Is Right for You?

There is no universally correct answer; the right structure follows your purpose. As a general guide, personal ownership suits a single home or a purchase meant to support a citizenship application, while a company tends to suit a rental portfolio, development or commercial use.

Can a foreign-owned company buy property anywhere in Turkey?

A company incorporated in Turkey is treated as a Turkish legal entity even if wholly foreign-owned, and can generally acquire property for its business purposes without the 30-hectare or 10% district caps that bind foreign individuals. Under Article 36, an acquisition inside a military forbidden, military security or special security zone needs prior permission, and the purchase must fit the activities in the company's articles of association.

Does buying through a company qualify me for Turkish citizenship?

Do not assume so. Article 20(2)(b) of the citizenship regulation describes a foreigner who buys qualifying property worth at least USD 400,000 with a three-year no-sale annotation on the title; a purchase by a company is not what that provision describes.

Is corporate ownership always more expensive to run?

A company carries ongoing costs — accounting, annual tax filings, and compliance — that personal ownership avoids. Whether those costs are justified depends on the income and gains the structure generates; for active or multi-property investors, the tax and liability benefits often outweigh them.

How is capital gains tax different for a company versus an individual?

Under repeated Article 80 of the Income Tax Law, an individual's gain on property sold within five years of acquisition is a capital gain taxed at the progressive income-tax rates; a sale after five years falls outside that charge, unless the property belongs to a business. A company has no five-year rule for property: the gain is part of its profit, taxed at the 25% corporate rate under Article 32 of the Corporate Tax Law.

Can I move a property I already own personally into a company later?

Yes, but contributing property to a company as capital counts as a disposal under repeated Article 80 of the Income Tax Law — taxable if it happens within five years of your acquisition — and Tariff No. 4 of the Fees Law charges title-deed fee on it, so timing and valuation matter. It is far cheaper to choose the right structure before you buy than to restructure afterwards. Speak to a lawyer before transferring.

Which structure is better for rental income?

An individual landlord can deduct actual expenses under Article 74 of the Income Tax Law — management costs and depreciation among them, and borrowing interest except on residential lettings — or take a flat 15% instead; residential rent may also benefit from the annual exemption in Article 21, subject to its conditions, and the rest is taxed at progressive rates. A company deducts its business expenses and pays corporate tax at 25% on the profit. Which costs less depends on your numbers.

This guide is general information on Turkish law, not legal advice on your own matter. Rules and practice change; check the position before you act.